Steve: I don't understand how DELL could do that. To manufacture for IBM, and allow IBM to make decent margins, DELL would have to restrict its margins. To allow DELL to make decent margins, IBM would have to restrict its margins. Its a lose-lose situation.
If IBM wants to sell its PC division, why would DELL buy it? The essence of DELL' claims it that its marketing, manufacturing and delivery is superior and is growing at a rate of 35-45% a year. What would it get from manufacturing machines to the specifications of IBM customers with a DELL name attached. Whatever they would get out of it, would it be worth a hefty purchase price for the IBM division. If IBM exits, COMPAQ will take a lot if not most of its PC business.
If IBM exits but wants to retain access to PC's to continue to offer a complete line to its corporate clients, then it would be better off just contracting out its manufacturing to someone other than DELL or COMPAQ. DELL will increasingly compete with IBM in storage, servers and other high end products - why would IBM want to help it?
I think all this speculation about some sort of deal between IBM and DELL is a mirage. IBM made a great sale of components to DELL - end of story. |
